With encouragement from government, mortgage firms speeding up short sales

"Short sales may be a new best option for Valley homeowners struggling to avoid foreclosure.

Home-loan modifications, endorsed by the federal government, are most borrowers' first choice when they fall behind on their mortgage payments because of a drop in their income. But short sales are also part of the federal housing plan to slow foreclosures. Unlike their slower-than-expected actions on loan modifications, lenders are now moving quickly on many short-sale requests in the Phoenix area.

New figures for the Valley show a record number of short-sale deals in various stages of completion. Pending short sales, including all of the deals under contract, reached 9,343 in October, compared with 1,448 in January, according to real-estate analyst Mike Orr. Almost 40 percent of the homes currently for sale in the Phoenix area are properties homeowners are trying to sell to avoid foreclosure."

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With encouragement from government, mortgage firms speeding up short sales

Tax Credit Quandaries Answered

The complexity of new home buyer tax credits leaves potential buyers with many questions. Here are answers to some of the most confusing:

How does a current home owner qualify for the $6,500 credit?
Buyers must have lived in their homes for at least five out of the last eight years. The home they buy must become their primary residence, but buyers don’t have to sell their previous home. They can use the previous home as a rental or a second home and still claim the credit.

Does the new home have to be more expensive than the one the buyer currently owns?
No. It is fine to use it to downsize. If the property sells for more than $800,000, the buyers don’t qualify.

Can buyers who are building a new home claim the credit?
Yes, although the contract must be in place by April 30 and the buyer must move in by July 1.

Can buyers claim the credit if they purchase a home from a relative?
No. The legislation prohibits taxpayers from claiming the credit if the sale is between “related parties,” including parent, grandparent, child, or grandchild.

Source: USA Today, Sandra Block (11/24/2009)

Administration plans new efforts on foreclosures

"With the foreclosure crisis showing no signs of relenting, the Obama administration plans to expand a program aimed at helping people remain in their homes.

The goal of the announcement, expected Monday, is to increase the rate at which troubled home loans are converted into new loans with lower monthly payments, Treasury spokeswoman Meg Reilly said over the weekend.

Industry officials said the new effort would include increased pressure on mortgage companies to accelerate loan modifications by highlighting firms that are lagging in that area."

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Administration plans new efforts on foreclosures

Number of Active & Sold Listings in the Phoenix-Metro Area (11/29/2009)

I will be posting the number of active listings in ARMLS (Arizona Regional Multiple Listing System) covering the Phoenix-Metro Area each week. Check back each week to see the updated numbers:

Total Active Listings - 33,690 (-7)

Single Family Detached - 26,150 (+11)
Patio homes - 716
Townhouses - 2,510
Apartment Style - 2,586
Gemini/Twin Homes - 319
Manufactured/Mobile Housing - 1,243
Modular/Pre-fab - 35
Loft Style - 131

Total Sold Listings (2009) - 83,731 (+1699)

Single Family Detached - 74,054 (+1460)
Patio homes - 942
Townhouses - 4234
Apartment Style - 3012
Gemini/Twin Homes - 449
Manufactured/Mobile Housing - 900
Modular/Pre-fab - 24
Loft Style - 116

Underwater mortgages: 1 in 4 in negative equity

"In a sign that more foreclosures could be on the horizon, 23% of people with mortgages owe more than their home is worth, according to a report released Tuesday.

Almost 10.7 million U.S. mortgages were "underwater" as of September, said research firm First American CoreLogic.

Another 2.3 million homeowners are within 5% of negative territory, the report said. The two figures combined comprise almost 28% of all residential properties with mortgages."

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Underwater mortgages: 1 in 4 in negative equity

Number of Active & Sold Listings in the Phoenix-Metro Area (11/22/2009)

I will be posting the number of active listings in ARMLS (Arizona Regional Multiple Listing System) covering the Phoenix-Metro Area each week. Check back each week to see the updated numbers:

Total Active Listings - 33,697 (+275)

Single Family Detached - 26,139 (+196)
Patio homes - 708
Townhouses - 2,512
Apartment Style - 2,604
Gemini/Twin Homes - 317
Manufactured/Mobile Housing - 1,248
Modular/Pre-fab - 38
Loft Style - 131

Total Sold Listings (2009) - 82,062 (+2199)

Single Family Detached - 72,594 (+1874)
Patio homes - 922
Townhouses - 4015
Apartment Style - 2941
Gemini/Twin Homes - 442
Manufactured/Mobile Housing - 876
Modular/Pre-fab - 24
Loft Style - 113

Repeal pending on home liability

"Opponents of a controversial Arizona law that could make some homeowners liable for tens of thousands of dollars on homes that go into foreclosure aren't giving up.

Real-estate groups, including the Arizona Association of Realtors, are trying to have Senate Bill 1271 repealed again in the current special legislative session.

SB 1271 was repealed in the Arizona's special budget legislative session a few months ago."

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Repeal pending on home liability